Tech giant and largest corporate digital asset holder MicroStrategy (MSTR) suffered a major drop below the psychological support level of $100 on Wednesday. The closing price at $97.79 (down 5.82%) extended a streak of horrific losses of 20% in a week and wiped out billions of dollars in the company’s market capitalization.
The drastic decline prompted a stern warning from economist and crypto critic Peter Schiff. He warned via the X platform that if short sellers continue to push MSTR’s price lower, Michael Saylor risks having to launch a forced sale of the company’s Bitcoin holdings in order to raise cash to buy back its corporate shares.
Schiff stressed that if MicroStrategy were to liquidate its multi-billion dollar Bitcoin treasury fund on the open market, it would trigger a second wave of panic selling that would destroy the global Bitcoin physical price structure. The concerns come as the crypto market is already in a fragile state due to the ongoing correction phase throughout the second quarter of 2026.
The company’s capital management measures have also come under fire from institutional investors after a regulatory filing revealed that MicroStrategy sold 2.71 million MSTR shares last week to raise $335.5 million in express funds. However, Saylor revealed that the company only allocated a small amount of capital of $35 million to buy an additional 520 BTC units over the weekend.
In contrast, $300 million in cash liquidity has been defensively placed in the US dollar balance sheet reserve to strengthen the company’s cash position to $1.4 billion. Saylor, however, defended the strategy, stating that the accumulation of fiat cash is a mandatory step to maintain the credit quality of the company’s Digital Credit securities.
